Easy Home Equity Loan

I am recently divorced and the reason for my divorce was due to my wife obtaining numerous credit cards on line im my name, she then maxed them out and didn’t make payments on them. When I found out the cards existed the interest rates had went out of sight and late fees had became enormous. Due to the divorce and the credit card debt I turned the credit cards and one personal loan over to Consumer Credit Counseling Service. This is still a strain on my budget. I bring home 3,700 dollars a month and my total debt that I turned over to the credit counselors is now 18,700 dollars. After I pay my rent, child support (which is the mortgage on the house my x wife lives in), car payment, a home equity line payment, and other monthly bills I only have approximately 360 dollars left for groceries and gas, and other emergency expenses. Would I be a good candidate for bankruptcy, or does anyone know a better option?

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Hello,

My ex wife still has not refinanced our marital home, even though this was ordered in the divorce decree. The judge gave her many chances to refinance, but my ex said she couldn’t afford it, interest rates were too high, couldn’t get a loan, etc. Well finally, after her not complying with the judge’s order to refinance the house to buy me out, the judge imposed a 00 per month penalty on her for every month that she doesn’t refinance the house. Okay – my question is, who gets the 00. Does it go to the court or would it be deducted from her share of the equity in the house. Can this fine really be enforced? Thank you very much for your help.

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I have an 80/20 loan. The 80 is an ARM with a 10 yr libor that had a 6.25% that went to an 8.25% in Feb. The other loan is a 30 yr fixed with an 8.25% rate. My husband is active duty military, so we qualify for the SCRA which locks us in at a 6% rate for as long as he remains active duty, which he intend to do for 20 years. Because we moved for his job, we had to rent out our townhome due to decreasing mortgage prices. We want to refinance to lock in our interest rates, esp since they are now in the 5.75% ranges and make our loans just one. We were told by our lenders (citi) that we have no equity in our home, therefore do now qualify to combine loans, and that refinancing cost will be around 5,000. Also it will be different considering the home is now an "investment" since it’s being rented. So my ? is do we keep the loan we have since we’re under the SCRA, or do we act now and go for rates that are low.And if so, how do we go about gettin a loan that doesnt require much to put down

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Current situation:

- Purchased home in 2006 for 520K
- 1st mortgage was for 417K at 6.125% 30 yr fixed
- 2nd mortgage is 20yr fixed HELOC at 7.625%

- Home is currently only worth 450-480K (due to recession)

Current balances are 390K on the 1st mortgage, 51K on the HELOC

Mortgage broker is telling me only real option is to refinance primary using "DU Refi Plus" to 4.25% (or 4.5%) and then hope that the HELOC subordinates.

Is it worth considering a total refi of both into one loan with PMI?

This is frustrating because I have enough to pay more every month than I do now, and I have savings, but I can’t justify draining it all just to increase equity to get a better rate. So instead I am stuck paying silly interest rates …

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Which word describes what you exchange for money when you negotiate a secured debt with a lender?

       collateral
       credit report
       principal
       interest

Which word describes the decrease in value of an asset over time?

       financing
       equity
       leasing
       depreciation

. What will a bank do if you default on a car loan?

       foreclose on the car
       refinance the car
       repossess the car
       depreciate the car

Why do lenders often charge more interest for a car loan than a home loan?

       because you could crash the car
       the car could be stolen during the loan
       cars can be moved to from one location to another
       all of the above

 What can a bank do if your credit score goes down significantly and you miss a car or home loan payment?

       foreclose on your home
       require the car loan to be paid-in-full
       increase interest rates
       all of the above

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We hav e a 5/1 ARM @4.5%. It will reset 11/09. Our house has depreciated, so we’ll no longer have 20% equity when we have to refinance in 2009. We also have a 2nd mortgage for 90K at 7.3%. We tried to combine both loans, but the 2 combined are more than 85% of the LTV. Our bank offers another 5/1 ARM for the first loan, but at 5.2, with a 0 one-time payment, no closing costs. Our payments will go up 0, which we can do. My question is, does it make sense to take the new 5/1 ARM, instead of waiting for interest rates to go up? Our worry is what will happen if we wait? Since we’ll no longer have the necessary equity, nor the money to pay off our 2nd mortgage, will we lose our home? Isn’t it better to refinance while rates are still low? Thank you!

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During a long period of underemployment and costly divorce, I accumulated about ,000 in credit card debt. My current income is 5,000 per year, I own a home with some equity that I can’t/don’t want to sell, and two vehicles outright. All in all, my assets are probably worth ,000 net mortgages, etc.

I was able to make the payments on my credit cards until all of the banks raised my rates to 30%, despite my paying on time and having a good credit score (735). At loan-shark rates, I have started falling behind each month and have burned through all of the cash I’d saved.

I could pay the balances back if they were at reasonable interest rates, but not at 30%. I don’t want to risk my home or vehicles, but I could care less about my credit score at this point because there’s no credit available to anyone anyway.

Would debt settlement be a better option than a Chapter 13 bankruptcy? If I did file a 13, would I be able to keep my vehicles?

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1. Which type of debt is the least attractive for a consumer? (1 point)
unsecured debt
secured debt
mortgage debt
lease debt
2. Secured debt means a lender gives you money in exchange for what?
(1 point)
collateral
credit report
principal
interest
3. When an asset, such as a car, decreases in value over time what is it called? (1 point)
financing
equity
leasing
depreciation
4. When you lease a car, you build equity while making monthly payments. (1 point)
True
False
5. If the bank decides you’ve defaulted on a car loan, what will they do? (1 point)
foreclose on the car
refinance the car
repossess the car
depreciate the car
6. Why do lenders often charge more interest for a car loan than a home loan? (1 point)
because you could crash the car
the car could be stolen during the loan
cars can be moved to annother location
all of the above
7. Secured debt allows you to refinance the loan to get money (equity) out in the event of an emergency. (1 point)
True
False
8. Credit cards are considered unsecured debt. (1 point)
True
False
9. If your credit score goes down significantly and you miss a car or home loan payment what could the bank do? (1 point)
foreclose on your home
require the car loan to be paid-in-full
increase interest rates
all of the above
none of the above
10. When you buy an off-lease used car, you can buy the same warranties you would get if you purchased the car new. (1 point)
True
False

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